April 22 (Reuters) - Cboe Global Markets said on Wednesday it will sell its Canadian and Australian equities exchanges to the TMX Group for $300 million, as the exchange operator sharpens its focus on
Toronto exchange operator to buy Cboe's Canada, Australia units
TMX Group Expands Global Presence with Cboe Acquisition
By Anirban Sen and Prakhar Srivastava
Overview of the Acquisition Deal
NEW YORK, April 22 (Reuters) - TMX Group on Wednesday agreed to buy Cboe Global Markets' Canadian and Australian businesses for $300 million, in a deal that further deepens the footprint of the owner of the Toronto Stock Exchange in the mining industry.
Strategic Fit and Industry Impact
"(This deal) allows us to build into a new market on the other side of the world that happens to be the second strongest mining resource market in the world. So it is such a strong, natural fit for us," TMX CEO John McKenzie said in an interview, referring to Australia's position in the global mining industry.
Expansion into New Markets
The deal, which will also help boost TMX's focus on higher-growth areas such as derivatives, digital assets and prediction markets, includes Cboe Canada and Cboe Australia exchanges.
Financial Performance of Acquired Units
Cboe's Canada and Australia businesses generated revenue of about $87 million in 2025, and adjusted earnings before interest, taxes, depreciation, and amortization of roughly $25 million, the companies said.
Deal Structure and Financing
The deal is expected to be financed by a combination of cash and debt, TMX CFO David Arnold told analysts earlier on Wednesday.
Cboe's Strategic Realignment
Portfolio Review and Divestitures
For Cboe, it marks a key step in the company's strategic realignment announced in October last year, when it said it would explore a sale of the two units as part of a broader portfolio review.
In July last year, Cboe also decided to wind down its Japanese equities business, citing evolving business conditions that challenged the financial sustainability of maintaining its equities operations in the country.
Future Focus and Growth Opportunities
Cboe Chief Executive Craig Donohue said the deal would allow the company to reallocate resources and capital toward strengthening its core businesses for further growth and profitability, while pursuing opportunities in new and emerging areas.
Regulatory Approvals and Closing Conditions
The transaction is subject to customary closing conditions, including regulatory approvals, and the acquisitions of Cboe Australia and Cboe Canada are expected to close separately after the required approvals are obtained.
Competitive Process and Regulatory Discussions
McKenzie said it was helpful that Cboe put its strategic intent into the public domain.
"It did create a competitive process in terms of a lot of players that showed interest in the assets, but it also allowed us to have kind of advanced discussions with regulatory bodies, both in Canada and Australia," he said.
Advisers on the Deal
Barclays is acting as financial adviser to Cboe, while Sidley Austin, Blake, Cassels & Graydon and Mallesons are serving as legal counsel. Canaccord Genuity and Macquarie Capital advised TMX on the deal.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Nivedita Bhattacharjee)
